Statement from Governor Kathy Hochul on Reinstatement of California Clean Air Act Waiver Authority

 

"Reinstating the California Clean Air Act waiver will allow New York to reduce greenhouse gas emissions and institute higher air quality standards that will benefit all of our communities. With today’s restoration, the Biden Administration is demonstrating their sustained commitment to fighting climate change, and bolstering New York’s efforts to make all new passenger cars and trucks sold in New York State to be zero-emissions by 2035. On behalf of all New Yorkers, we are grateful for President Biden and U.S. EPA Administrator Regan’s work to reverse the devastating actions taken by the previous administration and to continue to improve our environmental standards."

MAYOR ADAMS, CHANCELLOR BANKS, NO KID HUNGRY RECOGNIZE THIS YEAR’S “NYC HUNGER HEROES”

 

Cooks, Food Service Workers, and Aides Go Above and Beyond to Provide Healthy, Nutritious Meals to 800,000 Students Every Day

 New York City Mayor Eric Adams and New York City Department of Education (DOE) Chancellor David C. Banks were today joined by No Kid Hungry New York to recognize 32 “Hunger Heroes” across every one of the city’s school districts. Each Hunger Hero has gone above and beyond in the last year to help provide more kids access to healthy meals, especially during the disruption caused by the COVID-19 pandemic. The Hunger Heroes include cooks, aides, and food service workers — those on the front lines of fighting hunger in schools. 

With one in four children in New York City facing hunger this year, the people who prepare, serve and plan school meals are some of the most important people confronting this crisis. New York City’s food services staff serve more than 800,000 meals every day.

 

“The real heroes don’t wear capes — they wear aprons and gloves,” said Mayor Adams. “The school workers who have gone above and beyond to ensure our children don’t go hungry have delivered for our children, day after day, because when our children eat right, we can help them live up to their potential, inside and outside the classroom. These Hunger Heroes deserve our respect and gratitude, but we still have a long way to go. That’s why we are joining the Mayors’ Alliance to End Child Hunger and taking action to provide all of New York’s children with healthy food options.”

“Our food service employees are all true heroes — they are continuing to show up, even throughout the pandemic, to make sure that our young people are well-fed and taken care of each day. Congratulations on this well-deserved honor,” said DOE Chancellor Banks. “I know I speak on behalf of all our New York City families and school communities when I say thank you for all you do every day to be heroes for our young people.”

 

“I am grateful every day for the commitment of the school food workers serving healthy meals to our city’s children,” said Kate MacKenzie, executive director, Mayor’s Office of Food Policy.  “These ‘Hunger Heroes’ — like Mohammed Uddin of District 20, where my two kids attend school — are to be celebrated for the work they do, and I am thrilled to join the mayor and the chancellor in recognizing them today.”

 

“Our Hunger Heroes are too often unsung heroes, but they are some of the most vital professionals in our school communities,” said Rachel Sabella, director, No Kid Hungry New York. “No matter what challenges children may face at home, they can count on our Hunger Heroes to go above and beyond to provide good, healthy meals every school day. We are so thankful for their work, and for all the dedicated people working in our schools to keep kids strong and healthy.”

 

“With all the waste that occurs each and every day, no one should go hungry. Food is not a privilege, it's a right, and starving for food is inhumane. I believe the Office of Food & Nutrition Services — the second largest of food distribution besides the Armed Forces — can take the lead,” said Shaun D. Francois, president, District Council 37 & Local 372. “It's extremely important for our kids’ education because food feeds the mind. School food workers work hard each and every day to provide 800,000 nutritional meals a day to 1.1 million children — now that's heroism to say the least.”

 

This year’s Hunger Heroes include people like Treza Ayoub, the cook in charge at Jackson Heights’ P.S. 149 since 1998. When a nearby apartment building suffered a fire last April, displacing several students and causing them to miss school, Treza made sure every student still got their breakfast and lunch.

 

This year’s Hunger Heroes are:

 

Manhattan

 

• District 1: Pedro Rivas, Senior School Lunch Helper (P.S. 140 Nathan Straus)

 

• District 2: Aretha Garner, Cook (International High School at Union Square)

 

• District 3: Brittany Saffold, School Food Service Manager (P.S. 009 Sarah Anderson, West End Secondary School, The Urban Assembly School for Green Careers, P.S. 452)

 

• District 4: Sofia Rodriguez, School Lunch Aid/Cook (Central Park East High School)

 

• District 5: Snezhana Belja, School Food Service Manager (P.S. 046 Arthur Tappan, P.S. 194 Countee Cullen, Frederick Douglass Academy, Thurgood Marshall Academy Lower School)

 

• District 6: Consuelo Caballero, School Lunch Assistant/Cook-in-Charge (P.S. 189)

 

Bronx

 

• District 7: Ana Blanco, Cook (Academy of Applied Mathematics and Technology)

 

• District 8: Gisell Ramirez, Senior School Lunch Aide/Head Cook (Archimedes Academy for Math, Science and Technology Applications)

 

• District 9: Patricia Lightfoot, School Lunch Helper (I.S. 339)

 

• District 10: Marixa Lopez, School Lunch Helper/Office Manager (Field Office 10 @ M.S 391)

 

• District 11: James Baker, Senior School Lunch Helper (P.S. 108 Philip J. Abinanti)

 

• District 12: Marjorie Coates, Senior School Lunch Aide/Cook (P.S. 211)

 

Brooklyn

 

• District 13: Glenys Gonzalez, Sr. SLH (P.S. 008 Robert Fulton)

 

• District 14: Allison Anderson, Senior School Lunch/Cook (P.S. 297 Abraham Stockton)

 

• District 15: Maria Rivera, Sr. SLH (The Maurice Sendak Community School, Brooklyn School of the Arts)

 

• District 16: Cherise Neal, School Food Service Manager (P.S. 005 Dr. Ronald McNair, Boys & Girls H.S., Research and Service High School, Nelson Mandela High School)

 

• District 17: Tyrone Joseph, Heavy Duty Person (Pathways in Technology Early College High School)

 

• District 18: Lezlie Johnston, School Lunch Aide (P.S. 115 Daniel Mucatel School)

 

• District 19: Albert Robinson, School Lunch Aide (W. H. Maxwell Career and Technical Education High School)

 

• District 20: Mohammed Uddin, Sr. School Lunch Helper (P.S. 264 Bay Ridge Elementary School for the Arts)

 

• District 21: Terencia Hankins, School Lunch Aide (P.S. 288 Shirley Tanyhill)

 

• District 22: Sophia Davis, School Lunch Aide/Cook-in-Charge (P.S. 193 Gil Hodges)

 

• District 23: Yonnette Welcome, Senior School Lunch Aide (Brooklyn Collegiate: A College Board School)

 

• District 32: Luis Mendoza Jr, Cook (P.S. 376)

 

Queens

 

• District 24: Ruth Quizhpe, School Lunch Assistant/Cook (I.S. 061 Leonardo Da Vinci)

 

• District 25: Jessica Floratos, School Lunch Aide (P.S. 079 Francis Lewis)

 

• District 26: Lisa Fusco, School Food Service Manager (P.S. 041 Crocheron, M.S. 158 Marie Curie, P.S. 376, P.S. 213 The Carl Ullman School)

 

• District 27: Bella Tufano, Sr. School Lunch Aide/Cook-in-Charge (P.S. 100 Glen Morris)

 

• District 28: Ophelia Rango, School Lunch Assistant/Cook (Hillcrest High School)

 

• District 29: Joel Baptiste, School Lunch Aide (Eagle Academy for Young Men III)

 

• District 30: Treza Ayoub, Senior School Lunch Aide/Cook-in-Charge (P.S. 149 Christa Mcauliffe)

 

Staten Island

 

• District 31: Saffa Aboelenin, Senior School Lunch Aide (I.S. 007 Elias Bernstein)

 

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - MARCH 9, 2022

 

Lowest 7-Day Average Statewide Positivity Since July 20

Daily Positivity is 1.35 Percent – Under 2 Percent Over Past 13 Consecutive Days, Lowest Since July 15

21 COVID-19 Deaths Statewide Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.  

“Thanks to New Yorkers stepping up and getting vaccinated and boosted, our state is leading the way in beating back this virus and moving forward in the pandemic in a new way,” Governor Hochul said. “We must stay vigilant and double down on the tools we know are effective. Get your vaccine if you haven’t yet, your booster if you have, and make sure your children and loved ones get theirs as well.”

Today's data is summarized briefly below:  

• Test Results Reported – 132,590
• Total Positive - 1,795
• Percent Positive - 1.35%
• 7-Day Average Percent Positive - 1.46%
• Patient Hospitalization - 1,394 (-113)
• Patients Newly Admitted – 153
• Patients in ICU - 234 (-17)
• Patients in ICU with Intubation - 133 (-5)
• Total Discharges - 287,563 (+220)
• New deaths reported by healthcare facilities through HERDS - 21
• Total deaths reported by healthcare facilities through HERDS - 54,890

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.

• Total deaths reported to and compiled by the CDC – 69,674

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.  

• Total vaccine doses administered - 37,165,481
• Total vaccine doses administered over past 24 hours – 16,117
• Total vaccine doses administered over past 7 days – 120,090
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 91.8%  
• Percent of New Yorkers ages 18 and older with completed vaccine series – 83.2%  
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 95.0%  
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 85.8%  
• Percent of New Yorkers ages 12-17 with at least one vaccine dose (CDC) – 82.0%  
• Percent of New Yorkers ages 12-17 with completed vaccine series (CDC) – 71.9%  
• Percent of all New Yorkers with at least one vaccine dose – 81.3%  
• Percent of all New Yorkers with completed vaccine series – 73.4%  
• Percent of all New Yorkers with at least one vaccine dose (CDC) – 89.2%  
• Percent of all New Yorkers with completed vaccine series (CDC) – 75.7%  

Each New York City borough's 7-day average percentage of positive test results reported over the last three days is as follows:  

BOROUGH	Sunday, March 6, 2022	Monday, March 7, 2022	Tuesday, March 8, 2022
Bronx	0.79%	0.76%	0.73%
Kings	0.95%	0.93%	0.89%
New York	1.32%	1.33%	1.31%
Queens	0.94%	0.94%	0.90%
Richmond	1.19%	1.19%	1.16%

MAN INDICTED FOR ATTEMPTED RAPE OF PREGNANT WOMAN

 

Defendant Strangled and Beat Victim; Was on the Run for Month

Bronx District Attorney Darcel D. Clark today announced that a man has been indicted for Attempted Rape in the first degree and additional charges for attacking a five-months’ pregnant woman in front of her apartment building in Melrose in August 2021.

 District Attorney Clark said, “The defendant allegedly tried to rape a five-months’ pregnant woman, kicking and punching her in the face, head and abdomen. The defendant also allegedly strangled the victim. The atrocious attack left her with bruises, lacerations and swelling. Fortunately, the victim gave birth to a healthy baby months after the horrendous incident.”

 District Attorney Clark said the defendant, Amara Doumbouya, 27, who was apprehended in Cincinnati, Ohio, was arraigned today on Attempted Rape in the first degree, second and thirddegree Burglary, first-degree Sexual Abuse, second-degree Strangulation, Criminal Obstruction of Breathing or Blood Circulation, third-degree Assault, and Attempted Rape in the third degree before Bronx Supreme Court Justice Steven Barrett. The defendant was remanded and is due back in court on May 17, 2022.

 According to the investigation, on August 9, 2021 at approximately 2:30 a.m., the victim, a 37-year-old woman who was five-months’ pregnant at the time, was sitting alone on the front steps of her apartment building on Morris Avenue when the defendant allegedly approached her and made obscene remarks. When the victim began to make her way into her apartment building, Doumbouya allegedly grabbed her and pulled her shirt over her face, covering her nose and mouth, and wrapped her scarf around her neck until she could not breathe. The defendant allegedly threw her to the ground and dragged her into the building’s vestibule, pulled off her clothes, climbed on top of her and tried to kiss her. Doumbouya then allegedly repeatedly punched and kicked the victim and used his body to cover her nose and mouth, causing her to experience stupor. A neighbor heard the victim screaming and came to her aid. The defendant fled the scene. The neighbor called 911 and the victim was taken to a local hospital for bruising, swelling, soreness to her neck, back and abdomen, and lacerations to her mouth.

 The defendant was on the run for months and was arrested on February 19, 2022 in Cincinnati, Ohio. He was extradited to the Bronx on March 8, 2022.

 District Attorney Clark also thanked Detective Andrew Tuers and Sergeant Kevin Hoare of the NYPD Special Victims Unit, Detective Peter McCarthy of the NYPD Warrants Squad, and Detective Brandon Goff of the Cheviot Police Department from Cincinnati, Ohio for their assistance in the investigation.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

FEDERAL RELIEF AID TEMPORARILY REVERSES TREND OF NY SENDING MORE TO WASHINGTON THAN IT GETS BACK

New York’s Per Capita Balance of Payments Rank Among States Rises to 40th from Near Last Place NY Received $1.59 for Every Tax Dollar Sent to DC in Federal Fiscal Year 2020, Still Below National Average of $1.92  Historic relief funds from the federal government, provided in response to the COVID-19 pandemic, boosted New York’s per capita balance of payments from Washington from second-to-last in federal fiscal year (FFY) 2019 to 40th in FFY 2020 among states, according to a report released by New York State Comptroller Thomas P. DiNapoli. New York received $146 billion, or $7,236 per capita, more in federal spending than residents paid in total taxes to the federal government in FFY 2020. Overall, the state received 6.4% of total federal spending compared to 5.9% it received last FFY. He noted that all states had a positive balance of payments for FFY 2020 due to the unprecedented influx of federal relief aid. Prior to FFY 2020, the gap between the taxes New Yorkers paid and the spending the state received has fluctuated, but it remained consistently negative over DiNapoli’s five previous fiscal analyses, ranging from $19.9 billion in FFY 2013 and up to $40.9 billion in FFY 2016. The late Sen. Daniel Patrick Moynihan pioneered the concept of this balance of payments analysis when he represented New York in the U.S. Senate, believing that this work could help produce a more equitable outcome for all Americans. “The influx of federal relief funds was critical to helping states manage through the pandemic, but the money is temporary,” DiNapoli said. “Federal aid helped stabilize New York’s economy, but it is finite and will not resolve the long-standing imbalance of payments among the states. As federal pandemic spending winds down, the underlying trends we saw pre-pandemic are likely to return, with New York giving more to Washington than it gets back. As our rebuilding process continues, more must be done to achieve a more equitable distribution of federal funds to New York.” For every tax dollar paid to Washington, New York received $1.59, an increase from 91 cents the prior year, but still below the national average of $1.92. Under this measurement, New York ranks 44th for FFY 2020. New Jersey received the least amount for every tax dollar paid at $1.36, while at $3.66, New Mexico netted the biggest return, as it has for the last five years. New York generated 7.8% of the $3.2 trillion in tax payments to the federal government in FFY 2020. Compared to FFY 2019, tax dollars from New York fell at a rate more than twice the national average, reflecting in part the impact of the pandemic, including a decline of 11% in individual income tax payments from New Yorkers, compared to a national decline of 6.4%. The state’s per capita federal taxes were 27.6% higher than the national average, ranking it fourth behind New Jersey, Massachusetts and Connecticut. In total, New Yorkers paid about $250 billion in FFY 2020 compared to $265 billion in FFY 2019, ranking third among the states behind California and Texas. Federal spending in New York, including grants to state and local governments as well as direct payments to individuals, rose more rapidly than in other states. In total, New York received $19,589 in per capita federal spending, ranking above two-thirds of the states. This amount was 5% higher than the national figure of $18,599 per capita. New York's ranking rose to 17th in federal spending among the states in FFY 2020 from 24th in 2019. The improvement was primarily due to increased temporary federal grant and non-grant spending in response to the pandemic. Direct payments to individuals for Social Security, Medicare, veterans’ benefits, food assistance and more made up the largest category of federal payments to the states in FFY 2020, totaling over $3.6 trillion, or 58%. This category increased by more than $1 trillion compared to FFY 2019, including large amounts of pandemic-related unemployment compensation and relief payments to households, which was more than 20% of spending in this category. New York received an estimated $228.3 billion in direct payments to individuals, with a per capita figure that was moderately higher than the national average. Report New York’s Balance of Payments in the Federal Budget, Federal Fiscal Year 2020 Interactive Map with Balance of Payments Breakdown in the United States

 

NEW YORK STATE RELEASES DRAFT DISADVANTAGED COMMUNITIES CRITERIA TO ADVANCE CLIMATE JUSTICE

 

Draft Criteria Developed by Climate Justice Working  Group Released for 120-Day Public Comment Period

Climate Action Council’s Final Scoping Plan to  Prioritize Emissions Reductions in Disadvantaged  Communities Draft Scoping Plan Currently Out for Public  Comment and Review

New York State today announced the release of draft criteria developed by the Climate Justice Working Group (CJWG) for identifying disadvantaged communities. The draft criteria will guide the equitable implementation of New York’s ambitious Climate Leadership and Community Protection Act (Climate Act). Pursuant to the Climate Act’s disadvantaged community provisions, the draft includes an interactive map and a list of communities the criteria would cover for directing programs and projects to reduce air pollution and climate-altering greenhouse gas emissions, provide economic development opportunities, and target clean energy and energy efficiency investments.  

State Department of Environmental Conservation (DEC) Commissioner and Climate Action Council Co-Chair Basil Seggos said, “Advancing climate justice is central to New York’s Climate Act and our efforts to transition all New Yorkers to a cleaner, greener future. I thank the Climate Justice Working Group for the collaboration and extensive analysis that went into the draft disadvantaged communities list and criteria released today for public comment. This marks a significant milestone in New York’s efforts to advance climate justice and I encourage all New Yorkers to review these draft documents and support this ongoing work.”  

New York State Energy Research Development Authority (NYSERDA) President and CEO and Climate Action Council Co-Chair Doreen M. Harris said, “Along with this draft criteria for disadvantaged communities, I encourage the public to review the Climate Action Council’s draft scoping plan and participate in the public hearings to shape the final product as we work to implement a bold climate agenda. These efforts are clearly and mindfully incorporating climate justice at its core to deliver opportunities and improved quality of life to under resourced areas across New York State.” 

The Climate Act requires the State to invest or direct resources to ensure that disadvantaged communities receive at least 35 percent, with the goal of 40 percent, of overall benefits of spending on clean energy and energy efficiency programs – one of several ways the Climate Act focuses on prioritizing climate justice.  

The State’s CJWG, established by the Climate Act, voted unanimously to approve the release of draft criteria for public comment. Comprised of 13 representatives from organizations working in frontline Environmental Justice communities across New York State and supported by a team of State agency and technical experts, the CJWG worked to identify disadvantaged communities by evaluating 45 indicators including: environmental exposures, burdens, and climate change risks; sociodemographic factors such as age, race, and income; pollution characteristics; and health vulnerabilities. Using a methodology that worked at the census tract level, the working group combined and ranked all indicators into an overall score. DEC, NYSERDA, and the New York State Departments of Health and Labor supported the CJWG’s efforts.

In addition to the geographic component, the draft criteria include low-income households located anywhere in New York State for the purpose of investing or directing clean energy and energy efficiency programs, projects, and investments. These individual households report annual total income at or below 60 percent of the State median income, or households otherwise eligible for low-income programs. 

Criteria and methods for identifying disadvantaged communities will be reviewed annually to ensure the State is accurately targeting emissions reductions and investments.

DEC is accepting public comments until July 7, 2022, on the draft criteria and will hold at least six public hearings during the comment period. The draft criteria, community list, map, and supporting documentation are available on the New York State Climate Act website at https://climate.ny.gov/DAC-Criteria.

New Yorkers are encouraged to submit comments via the online public comment form, via email at DACComments@dec.ny.gov, and via U.S. Mail to Attention: Draft DAC Comments, NYS DEC, Attn. Office of Environmental Justice, 625 Broadway, 14^th Floor, Albany NY 12233. Information about the public hearings will be released soon. 

The Climate Act requires that the Climate Action Council’s Scoping Plan prioritize and maximize reduction of greenhouse gases and co-pollutants in disadvantaged communities. The Climate Action Council’s Draft Scoping Plan was released for public comment on Jan. 1, 2022. The draft plan provides several scenarios for the Climate Action Council to consider recommending policies and actions to help New York meet its ambitious climate directives. The Draft Scoping Plan is available for public review and comment, and the Climate Action Council will also hold a series of public hearings. For more information about the Draft Scoping Plan, or to submit comments or learn more about upcoming public hearings, visit https://climate.ny.gov/.  

 

New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the CLCPA, New York is on a path to achieve its mandate of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy-wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings. 

Third Founder Of Cryptocurrency Exchange Pleads Guilty To Bank Secrecy Act Violations

 

Samuel Reed Designed BitMEX as a Platform to Flout U.S. Anti-Money Laundering Rules

 Damian Williams, the United States Attorney for the Southern District of New York, announced that SAMUEL REED, one of three co-founders and a high-ranking executive of purportedly “off-shore” cryptocurrency derivatives exchange the Bitcoin Mercantile Exchange or “BitMEX,” pled guilty today to violating the Bank Secrecy Act (the “BSA”) by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at BitMEX.  Under the terms of his plea agreement, REED agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense.  REED pled guilty today before Chief U.S. District Judge Laura T. Swain, and will be sentenced by U.S. District Judge John G. Koeltl.  The other two founders of BitMEX, Arthur Hayes and Benjamin Delo, previously pled guilty to the same offense in February 2022.

U.S. Attorney Damian Williams said:  “Samuel Reed has now joined his co-founders, Arthur Hayes and Benjamin Delo, in admitting that they caused BitMEX to commit criminal violations of the anti-money laundering laws that govern financial institutions operating in the United States.  As today’s guilty plea reflects, this Office will not permit cryptocurrency exchanges to operate as a shadow financial system that enables criminal actors to move their illicit proceeds without detection, and will vigorously investigate and prosecute the operators of such exchanges who deliberately flout U.S. law.”

According to the Indictment, public court filings, and statements made in court:[1]

REED, together with Arthur Hayes and Benjamin Delo, was one of the three co-founders and the long-time Chief Technology Officer of BitMEX.  BitMEX is an online cryptocurrency derivatives exchange that, during the relevant time period, had U.S.-based operations and served thousands of U.S. customers, notwithstanding false representations to the contrary by the company.  From at least September 2015, and continuing at least through the time of the Indictment in September 2020, REED willfully caused BitMEX to fail to establish and maintain an AML program, including a program for verifying the identify of BitMEX’s customers (or a “know your customer” or “KYC” program).  As a result of its willful failure to implement AML and KYC programs, BitMEX was in effect a money laundering platform.  For example, in about May 2018, REED was notified of allegations that BitMEX was being used to launder the proceeds of a cryptocurrency hack.  Neither REED nor the company filed a suspicious activity report thereafter (indeed, BitMEX filed no suspicious activity reports at all between 2014 and September 2020), nor did BitMEX implement an AML or KYC program in response. 

REED failed to institute AML or KYC programs at BitMEX despite closely following U.S. regulatory developments that made clear his legal obligation to do so if BitMEX operated in the United States, which it did.  Despite repeatedly stating that BitMEX did not serve U.S. customers, including to individuals outside of BitMEX, REED knew that BitMEX’s purported withdrawal from the U.S. market in or about September 2015 was a sham, and that purported “controls” BitMEX put in place to prevent U.S. trading were an ineffective facade that did not, in fact, prevent users from accessing or trading on BitMEX from the United States.  REED not only understood that U.S. customers continued to trade on BitMEX, but derived substantial profits from BitMEX as a result of U.S.-based trading. 

REED, 32, of Massachusetts, pled guilty to one count of violating the Bank Secrecy Act, which carries a maximum penalty of 5 years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad, and thanked the attorneys and investigators at the Commodity Futures Trading Commission whose expertise and diligence were integral to the development of this investigation.

[1] Two of REED’s co-defendants, Arthur Hayes and Benjamin Delo, pled guilty to violating the BSA in February 2022. As to REED’s remaining co-defendant, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Attorney General James and State Police Superintendent Bruen Announce Arrest of Phony Attorney

 

Andrew Schnorr Allegedly Posed as Attorney and Defrauded Individuals Out of More Than $22,000 in Legal Fees

 New York Attorney General Letitia James and New York State Police Superintendent Kevin Bruen today announced the arrest and arraignment of Andrew Schnorr, 39, for practicing law without a license and defrauding New Yorkers in Buffalo out of more than $22,000 in legal fees. Despite never graduating from a law school nor passing a bar exam, Schnorr allegedly posed as a licensed attorney and even represented clients at numerous legal proceedings. Schnorr was charged with Unauthorized Practice of Law (a Class E felony) and Grand Larceny in the Third Degree (a Class D felony). If convicted, he faces up to 2 1/3 to 7 years in state prison. 

“Practicing law without a license undermines the integrity of our judicial system and jeopardizes the fate of New Yorkers who need legal services,” said Attorney General James. “This individual tricked vulnerable people by posing as an attorney who could help them, but instead cheated them out of tens of thousands of dollars while risking their future. New Yorkers must be able to trust that the professionals representing them are qualified and serving in their best interest.”

“This suspect lied about his credentials and as a result stole thousands from unsuspecting victims who were counting on him for legal advice based on education and training that he didn’t have,” said State Police Superintendent Bruen. “I commend our members and the Office of the Attorney General for their work to hold this suspect accountable for his actions.”

Today’s charges are the result of a joint investigation by the Office of the Attorney General’s (OAG) Criminal Enforcement and Financial Crimes Bureau and the New York State Police. The investigation began in the summer of 2019 when OAG received a complaint from an attorney concerning Schnorr’s lack of competence during a legal proceeding. As outlined in today’s complaint, the investigation revealed that Schnorr was in fact, not a licensed attorney, and that he had lied about graduating from New York University School of Law and lied about passing the bar exams in New York and California.

Schnorr secured his job at a Buffalo law firm by submitting a resume with fake credentials. He worked as an associate attorney at the firm and was tasked with civil matters involving depositions and settlement conferences. Altogether, he represented at least nine clients at the law firm beginning in 2019.

The OAG’s investigation remains ongoing. Any New Yorker who believes that they have been a victim of this type of crime or have additional information regarding this matter are encouraged to contact OAG at (716) 853-8400.

By law, attorneys must be licensed in New York state by the New York State Unified Court System’s Office of Court Administration (OCA). If possible, before meeting or retaining an attorney, individuals should confirm the person’s license on OCA’s website. For legal representation outside of New York state, individuals should contact the respective state's licensing authority to confirm whether a person is licensed to practice law in that jurisdiction.

Today’s charges against Schnorr are allegations and he is presumed innocent unless and until proven guilty.